GoPro Inc (NASDAQ:GPRO) reported earnings for the first time as a public company. GoPro exceeded the analysts’ revenue targets for the quarter, but they reported much larger losses than a year prior. Their stock price also dropped by around 11%. Bloomberg’s Jon Erlichman talked about the GoPro’s figures on Bloomberg TV.
Erlichman said that GoPro Inc (NASDAQ:GPRO) is one of the companies that showed positive revenue growth. He thinks that they have their hot product, the GoPro Device, which is preferred over any other similar products by surfers, divers and many other industries.
Erlichman pointed out that their revenue was up by 38% in the quarter. GoPro Inc (NASDAQ:GPRO) generated revenue of $245 million, compared to $177 million last year. He said that people are trying to make sense of the sudden drop in stock price right after the earnings report. He thinks that GoPro was profitable on one basis and was not on another.
“[…] What you are seeing is a company that is rapidly expanding. Its costs are growing along with revenue, which certainly does cut into profitability, and because of that bonkers first day of trading, when the shares listed at $24, went north of $30 and at the end of this trading day, we are getting close to $50, giving it a $5.8 billion market valuation. May be that does result in some pause by investors,” Erlichman said.
GoPro Inc (NASDAQ:GPRO) went public company by not just announcing themselves as camera maker but also as a media company. Erlichman said that there were no numbers reported on the media part of the company in their filings. He added that the shipments of the hardware by GoPro have increased significantly. He pointed out that the number of hardware shipped by GoPro has tripled to 3.8 million since 2011.
Erlichman also said that GoPro Inc (NASDAQ:GPRO) has a long way to go before establishing themselves as a media company. He thinks that GoPro has advertised and motivated people and made them use their cameras to shoot and share videos, which increases their chances of becoming a media company. He added that it is very difficult for them to show that growth in numbers though.